7 takeaways for Canadians from PM Carney’s spring economic update
Published: 2026
OTTAWA - While emphasizing the “resilience” of Canada’s economy, the federal government’s newly tabled spring economic update includes few new line items geared toward Canadians’ pocketbooks.
“I think ordinary Canadians who are looking for pocketbook savings will be disappointed with this spring economic update,” said Fred O’Riordan, the national leader for tax policy at EY, in an interview with CTV News.
Despite the inflation rate hovering around the Bank of Canada’s target two per cent figure for nearly two years, two key areas on the affordability front — fuel and groceries — are seeing major spikes.
Pointing to a “rapidly changing and increasingly fragmented world,” the spring economic update repeats the Liberals’ oft-touted intention to focus on what Canada “can control.”
For example, it highlights new affordability measures the government has announced since the November budget, namely eliminating the fuel excise tax and extending the groceries and essentials benefit. And, it restates the pre-promised streamlining of access to the Canada Disability Benefit and the Canada Student Loan Forgiveness Program, but the overall package offers little new beyond that.
Still, from skills training to sports funding, pension changes and employment insurance extensions for some, there are a few measures included in the document geared toward increasing affordability.
CTV News has reviewed the 167-page spring economic update. Here are some of the line items that could impact the average Canadian.
Spending billions on skills training
The spring economic update lays out the government’s plan — dubbed Team Canada Strong — to spend $5.9 billion over five years to recruit, train and hire between 80,000 and 100,000 new Red Seal skilled trades workers by 2030-31.
Despite an entrenched trade war with the U.S., overall unemployment in Canada is holding steady. But, there is a gap across generational lines, with youth unemployment more than double the national average.
In the November budget, the Liberal government announced new funding for its summer jobs program, among other measures. Now, the spring economic update’s skills training measures are the largest line item when it comes to new spending.
“Team Canada Strong will provide a simple and seamless way to learn about and enter into the trades and link up with employers,” the spring economic update states. “Young people will start with paid, job ready placements that lead directly into registered apprenticeships—earning income, gaining experience, and contributing immediately to major housing, infrastructure, and defence projects.”
Part of the plan also includes funding for apprenticeships by way of wage subsidies for employers. It also includes income top-ups for apprentices and one-time bonuses for apprentices obtaining certification in a Red Seal trade.
The spring economic update lists other affordability measures for tradespeople as well, including funding to help ease labour mobility costs. The document proposes, for example, to increase the limit on temporary relocation expenses that eligible tradespeople can deduct on their taxes.
Significant sports funding
The spring economic update is proposing what it’s framing as “generational investment” in Canadian sports and athletes.
Dubbing it “from playground to podium” funding, the federal government is earmarking $755 million over five years, starting in 2026-27, and $118 million ongoing, to Canadian Heritage to support Canada’s sport system to:
- “Bring more world-class sporting events to Canada;
- Help our athletes train, compete, and perform, including support for better mental health;
- And see new and existing community infrastructure … fully used and enjoyed by a new generation of athletes.”
Reducing CPP contribution rate
The spring economic statement also aims to keep more money in Canadians’ wallets by reducing the amount they have to contribute to the Canada Pension Plan.
Starting in January, the CPP contribution rate will be reduced from 9.9 per cent to 9.5 per cent.
According to O’Riordan, the change likely indicates the CPP fund is actuarily sound and performing well, allowing the federal government to pass along some of the surplus from it to Canadians.
“This change would maintain a prudent financial buffer to protect the CPP against future economic and demographic risks, while providing meaningful contribution relief,” the spring economic update reads.
“A 40-basis point reduction in the CPP contribution would translate into annual savings of about $133 for an employee earning $70,000 a year, with equivalent savings for their employer,” it also projects.
Clearing air travel complaints backlog
The federal government wants to change the resolution process for air travel complaints in order to reduce the backlog.
Firstly, it’s proposing to transfer responsibilities for those complaints from the Canadian Transportation Agency to the Minister of Transport, which it claims will “enhance transparency of the complaints process and enforcement of passenger rights regulations.”
The spring economic update doesn’t put a number to the current backlog, but does categorize it as “significant.”
It also states “the government’s intention to clear the backlog of air travel complaints by engaging a neutral, third-party dispute resolution organisation based on a proven model in the (United Kingdom) and the (European Union).”
“Beyond the backlog, the government also intends to develop a simpler and more effective regulatory regime, so that rules are clearer and passengers are fairly and more quickly compensated when air travel does not go as planned,” the spring economic update states.
Extending EI for some seasonal workers
The federal government is proposing to extend the employment insurance benefits for seasonal workers in some key regions in Canada.
The spending is a continuation of rules that were introduced in 2018, according to the spring economic statement, to provide up to five extra weeks of employment insurance for eligible workers in 13 specific regions.
The measure was set to expire this October, but the federal government is opting to extend it through to 2028.
Some measures for homebuyers
Another previously announced or existing measure the federal government is proposing to extend is the grace period during which homeowners are not required to start repaying their Home Buyers’ Plan withdrawals.
According to the spring economic update, the measure already applies for those who made a withdrawal to their Home Buyers’ Plan between 2022 to 2025, but the grace people will now also extend to those making their first withdrawal up to the end of 2028.
“This will provide cash flow relief of up to $4,000 (1/15 of $60,000) per individual per year for the three years over which they are not required to repay the amount into their RRSP,” the document estimates.
Health benefits to Indigenous communities
The spring economic update also allocates some new funding to Indigenous health initiatives.
Namely, it earmarks $794 million this year to support the Non-Insured Health Benefits Program, “which provides First Nations and Inuit with coverage for a range of health products and services such as medical travel, pharmaceuticals, and mental health counselling.”
With files from CTV News’ Rachel Aiello and Brennan MacDonald
Spencer Van Dyk
Opens in new windowWriter & Producer, Ottawa News Bureau, CTV
Carney Liberals launching new skilled training strategy, deficit projected at $65.3B
Updated:
OTTAWA — In its first-ever spring economic update, Prime Minister Mark Carney’s newly minted majority government is promising to spend billions on a strategy to train more skilled workers to help deliver on its plans to build big.
The revised fiscal outlook also shows that while the federal deficit is $11.
4 billion lower in the current fiscal year than what was projected in the 2025 federal budget, the deficit is tracking to only decline nominally in the years ahead.
For example, in the coming 2026-27 fiscal year, the deficit is projected to be $65.3 billion, down just slightly from the $65.4 billion estimated in the 2025 federal budget.
The document — clocking in at 167 pages cover to cover and titled “Canada Strong For All” — is illustrative of how the government is gearing up to execute on Carney’s ambitious agenda, while steering the country through geopolitical headwinds and uncertainty.
Though after promising to emphasize how their economic plan will benefit all Canadians, the government’s spring statement offers few new line items geared towards consumers’ pocketbooks.
In total, there is $37.5 billion in net new spending in the spring economic update.
That number grows to $54.5 billion when including measures announced since the last federal budget.
“Canada is resilient... Canadians are resourceful people,” Finance Minister Francois-Philippe Champagne is poised to tell parliamentarians, according to his prepared House of Commons remarks, provided to reporters ahead of time.
“Together we can chart a path forward through the fog of uncertainty because Canada has what the world wants and increasingly needs.”
More money for workers and athletes
The biggest new commitment contained in the government’s economic update is a new nationwide recruitment and training effort that would see between 80,000 to 100,000 new skilled trade workers hired by 2030-31.
The government says this would create “new opportunities for Canadians” and attract the workers needed “to build more homes and major projects at speed and at scale.”
For this “Team Canada Strong” plan, the Liberals are allocating $5.9 billion over five years, combining initiatives such as wage subsidies, apprenticeship training grants, labour mobility tax credits, training bonuses, and employer incentives.
As Carney alluded to on Monday, the marquee macroeconomic pledge within the spring economic statement is the creation of a national sovereign wealth fund that will give Canadians a stake in major projects. Relatedly, the Liberals plan to make the Employee Ownership Trust Tax Exemption permanent “to empower workers to participate directly in building Canada strong.”
The update also includes a new commitment to invest in sport in Canada “from playground to podium.” Earmarking $755 million for this initiative, the government says its aim is to expand access to sport, better utilize existing and new infrastructure, and better support Canadian athletes.
On the defence front, the billions in major new spending anticipated in the years ahead are not yet being accounted for as costs have yet to be pinned down on future procurement.
But the Liberals are spending $103.8 million to establish the Defence Investment Agency as a standalone entity. Another $2 billion is being committed to continue Canada’s support for Ukraine through Operation UNIFIER.
The document also details costs and commitments connected to a series of pre-announced initiatives including the Major Projects Office, the automotive and nature strategies, as well as extending alcohol excise duty relief for Canadian breweries, distilleries and wineries.
Pension rate relief, little else for pocketbooks
In terms of affordability measures for everyday Canadians, this spring economic statement — which the Liberals have stressed is not a mini-budget — offers little that’s new.
The Liberals have chosen, however, to highlight a few pre-announced commitments such as the enhanced groceries benefit going to 12 million Canadians as of June 5, the temporary excise tax holiday saving Canadians up to 10 cents/L on gasoline, and capping non-sufficient fund fees at $10.
There is one new move that could offer a small degree of savings for workers. The government has announced that effective Jan. 1 of next year, it intends to reduce the Canada Pension Plan contribution rate from 9.9 per cent to 9.5 per cent.
The Liberals estimate this will translate into annual savings of approximately $133 for an employee earning $70,000 a year, with comparable savings for their employer.
On housing, the only measure that may directly benefit homeowners or prospective homebuyers is a commitment to extend the grace period for repaying Home Buyers’ Plan withdrawals from their Registered Retirement Savings Plan (RRSP) from two years to five years, for participants making a first withdrawal between Jan. 1, 2026 and Dec. 31, 2028.
Short-lived deficit decline
Taking all of this into account, economists CTV News spoke with were quick to note that while federal coffers have been buoyed by higher oil prices and other economic factors, the Liberals are opting to largely channel increased revenues and savings into new spending, rather than paying down the deficit more concertedly.
The 2025 federal budget presented last fall — framed as an “investment budget” — went big on capital spending and projected the deficit to be $78.3 billion in 2025-26. Now, the deficit for this fiscal year is projected to be $66.9 billion.
Over the five-year horizon, the deficit is not forecast to decrease to a comparable degree. In 2026-27, the deficit is projected to be $65.3 billion, in 2027-28, the deficit is tracking to decline slightly to $63.1 billion, continuing on a downward trajectory in the two years following, but still far from balance, sitting at $53.2 billion by 2030-31.
“Beyond 2025-26 the deficit track is essentially the same as what we have seen in the budget,” said Mostafa Askari, chief economist with the Institute of Fiscal Studies and Democracy. “The first thing I noticed was that the debt-to-GDP ratio is much lower than what they had at the time of the budget.”
Fred O’Riordan, national leader of tax policy at EY Canada, seized on the fact that debt-servicing charges are tracking to increase to $81 billion by 2030.
“That’s pretty significant when you consider that that $81 billion is revenue that has to be spent to service the debt, as opposed to revenue that’s available to deliver services and so on to Canadians,” O’Riordan said.
Ahead of the update, Carney was confident the document would demonstrate the government’s “good” fiscal management.
“We also remain firmly on track to balance day-to-day operating spending with revenues by 2028–29,” Champagne is poised to tell MPs this hour.
“We are maintaining a strong fiscal position,” he said. “We are on track to meet our fiscal anchors.”
No update on public service job cuts
Carney’s first budget also promised to rein in operational costs to the tune of $60 billion over five years. A major plank of that plan committed to shedding 28,000 public service jobs by 2028-29.
Tuesday’s fiscal refresh provided no meaningful update on the expenditure review effort. Though, the government does note it’s committing to reduce spending on external management and other consulting services by 20 per cent over the next three years.
This crackdown and pivot to rely on existing public service expertise is estimated to save $450 million in 2027-28, and $900 million annually from 2028-29 onwards.
The document does state that “results of other reviews” — such as the public service reduction efforts — “will be reported in Budget 2026.”
To get a sense of the lack of focus on public service cuts in this document — despite it being a preoccupying concern for many federal workers — the phrase “public service” only appears seven times in the entire spring economic statement.
In contrast, “oil” is mentioned 130 times, the word “defence” gets used 85 times, the word “gas” appears 77 times, and the descriptor “resilient” is referenced 28 times.
The Canada-United States-Mexico Agreement (CUSMA), a pact that could cause considerable economic shockwaves if dramatically renegotiated, comes up just six times.
Awaiting reaction, poised to pass
Sources told CTV News ahead of the embargoed reading of the spring economic statement that Champagne met with opposition parties in the lead up to Tuesday.
Though, while previous Liberal governments have had to make pre-budget consultations more of an earnest effort, given the need to secure opposition votes to pass any proposal, their current majority posture has eliminated that need.
As a result, all motions and legislation approving the spending within the spring economic statement, are expected to pass with ease, once debate concludes.
Once the finance minister finishes his presentation of the document in the House of Commons, it’s expected that opposition parties will react.
This is a developing story, check back for updates…
Rachel Aiello
Opens in new windowNational Correspondent, CTV News
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